Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-08-03
COUNTY AID FOR CONSTRUCTIONS.

" uulid the ROAD, ana Llat upon that
basis The Government should make good the
deficiency.
COUNTY AID FOR CONSTRUCTION.
Referring to aid granted by counties to the
central Pacific, Mr.. Litter read from list OF
counties which voted to aid the California rail.
teo, Les Angeles, san Joaquin, and several
others, the same aggregating So. 265 600 ana
asked if any of these should be Included in The
statement given by the witness
Senator Stanford said that none of these con.
cerned The Central Pacific. In some eases the
money authorized under Acts of the Legislature
by the counties referred to was never raised
ana where II was, 1t went to roads other than
the Central. Perhaps some of the roads 20
built were now leased by the Central, however
Mr. AnGerson-Senator,t the belief is prevalent
whether just or not is immaterial-that the in.
ability of the Central Pacific to pay its indebted
ness to the Government arises from the fact thai
its resources have been absorbed through con.
tracts let and work done by the Contract and
FINANCE, western Development and Pacific I'm.
proyement Companies?
Senator Stanford answered with some EN- MIA
SIS, not single dollar of money belonging to
the Central Pacific Comrany had eyer been
diverted TO any other corporation The road
MA been built partly with money given by the
general Government, every dollar of which had
Deen put luto the enterprise. When completed
the stock was worthless it could not have been
sold for five cents on the dollar and he con
not see what interest the Government had in il
whether the stock was divided into / 900 OF 100
deNelopeG population and business which has
made its stock valuable. With that he Thought
the Government had nothing to do. The books
oil the Central Pacific were open to iusnection
ana the Commission was at liberty to examine
them. There was nothing to conceal and he
wanted the light thrown upon everything CON
cernlng the construction OF this road The
books would show that all the money given by
the Government had been expended in the
building of the road.
NOTHING To CONCEAL FROM THE COMMISSION.
This remark took the Commission by surprise.
and Mr.. Anderson asked if the books of the cor
poratlons when had dealings with the Central
Pacific were also open for inspection
Senator StanfoId-I am ready to use my inhu-
ence to have the Commission examine any books
we have asto theCentral Pacific Railroad, but we
nave very active rivals and competitors and we
have relations with many individuals These
accounts we do not wish TO be laid before the
public. We do not want these books and papers
thrown open to the general examination of
everybody. So far as the Commission is con
cerned. we have no objection to its seeing any
thing that it p,eases. We know it to be com
posed OF honorable gentlemen. and know that
II viii not expose to the public matters of pri-
vate nature. | would like TO put my offer in
writing and submit ii to the Commission for its
consideration. So far as the Central Pacific is
concerned, want all the light thrown upon its
transactions and affairs that is possible TO OBJ
tain, and the Commission cannot he more de-
sirouS upon that point than am.
Mr.. Anderson-Senator,d do understand that
tiis Oll6T All inspection OF the BOOKS of
the Western Development, Pacific Improvement
and other companies which have had dealings
with the Central Pacific?
THE OFFER ENLARGED.
Senator Stanford: So far as those books re-
late to the affairs of the Central Pacific. we
have no objection 10 their being opened to your
but, as have said, we can think
object TO our private accounts being
exhibited to the public, There has never been
a transaction between any of these corporations
tie m fbavh ,e; ~
90 lar for dollar, and we are willing and anx-
ious that you should satisfy yourself on that
point. This is the first time the Central Pacific
Company has had Il chance to present its case
To the public, and We are desirious OF making
the most of it.
Mr.. Littler-Well. Senator. | hope Won will
put your whole case in.
Senator Stanford-That is what We desire to
Go. There have been timcs-not many wears
ago, too-When we might as well have whis-
pered IN hurricane with the expectation of
being heard a. to have attempted to defend or
selves before the public. Now that the atraos-
phere is calm, we propose to make the most of
II, ana we shall endeaYor TO aid the Commission
IN every way. so far az you are individually
concerned, gentlemen, We have no objection to
you examining our books as thoroughly as Won
may wish, and we only object to the publication
OF those matters which have no connection with
the inquiry.
REMARKS OF COUNSEL.
Mr.. Cohen thought the Commissioners sbould
adopt the rule followed by Risi prius Courts in
dealing with evidence. In some instances let
,efs or other doeums nts were called for, and,
peihs found luimaterial. were returned without
being made public. He thought the Commits
sloners should, in cases where there was A dis
pute as to the materially of the evidence they
wanted, SUBMIT the question to the Courts
Colonel Raymond did not think there was
ukeiy 70 be any difhculty. Nothing has so far
been brought out by the Commission that has
MOI already been the subject of political
speeches convention platforms and corites,s i'm
ne courts Tor years past. Nearly every school
boy knew the railroad question by heart. and
as a Tor the books desired by the Commission
thummed until they are nearly worn out ii
was his opinion that there was no room for die
hcqlty over the contents of the books
chairman fattiSon remarked that if private
inquiry at the Office eff the railroad conpanv
was c 'ntempiated, he should put in an opiec-
Ton at once He would not consent as an of.
heer OF the government, to any star-chamber
proceedings If the books could not he r1T1hI;cIv
he would not inspect them nj ali
Senator Stanford said the company did not
ask for any starehamber inquiry. II merely
aeslreu that sucii matters as were not pertinent
70 OBJECTS OF the Commission be not given TO the
puoilc nor made part of the record Ue did
not think this was unreasonable
, MI Anderson asked that the proposition of
the central Pacific lawyers be put in writing
and q long informal discussion upon how tb;s
should be done, followed. 1t was finally decided
10 adjourn until o'clock P NJ
At the hour named the Commission again met
ana decided to accept Senator Stanford's promo
'itlon as TO examination of the book with The
that the motion filed this morn
ng In the United States Court should stand ever
Without prejudice. with the right to either si6a
o call the same up for argument on ono dav,s /
lotiee. The Commission then resolved 70 send /
heir chief accountant tn the railroad nlJijdi,-sr
! fonrth and townsend streets for inspection /
! the Sccount books relative to the actual ersst
construction, but asked that the INFINITE
ooks OF the Western Development Conlrany no
enI 10 tie Palace Hotel in order that ffiey may